Fraud in the construction industry takes on many forms, from asset misappropriation to financial statement fraud. According to the Association of Certified Fraud Examiners’ 2014 Report to the Nations on Occupational Fraud and Abuse (RTTN), the average organization loses five percent of its revenues to occupational fraud. Factor in waste, abuse, and non-occupational fraud (fraud committed by those outside the ...

Here’s what surety professionals and their contractors should know When it comes to federal government contracting, compliance can be the last item that construction contractors want to address. It can be burdensome and time-consuming, and every dollar amount that a contractor devotes to compliance cuts into a contractor’s bottom line. Despite the arduous nature of compliance, however, the risks and ...

The lapse of a contractor’s construction license can be a big problem for its surety. A surety must heavily rely upon its principal to comply with applicable business requirements, including the qualification to do business in the jurisdiction of the project and a valid contractor’s license. However, a contractor’s license can be quickly suspended or revoked for failure to pay ...

For those who never had the opportunity to learn Latin or to attend law school (you may have been fortunate in both cases), the Latin maxim ignorantia juris non excusat can be translated to “ignorance of the law excuses not.” Code-based legal systems may use the Latin phrase ignorantia iuris nocet, which translates to “not knowing the law is harmful.” ...

Massachusetts Supreme Court’s Decision Sets New Standard for CMs’ Responsibility for Design The following article is an update on the Coghlin vs. Gilbane case. Michael C. Zisa, Esq. and Warren E. Friedman, Esq. of the law firm of Peckar & Abramson, P.C. describe how the Massachusetts Supreme Judicial Court’s decision creates a new standard governing the Spearin Doctrine and an ...

“Fisherman know that the sea is dangerous and the storm is terrible, but they have never found those dangers sufficient reason for remaining ashore,” stated Ferdinand Magellan, an explorer from Portugal who became the first to circumnavigate the earth. Construction contracting is also a risky adventure. READ MORE…

The NASBP Resource Directory, which is published annually in the fall issue of NASBP’s Surety Bond Quarterly magazine, offers a valuable listing of NASBP specialist firms that help construction and other businesses qualify for and maintain surety credit. READ MORE…

In the days of design-bid-build project delivery, architects and engineers were responsible for design and contractors werevresponsible for construction. These days, however, the bright lines of responsibility have been blurred by alternative project delivery methods such as “design-build” and “construction manager at-risk.” As project delivery methods change, so do risks for contractors who assume these alternate and expanded roles. READ ...

Electronic bond forms to improve operational efficiency Surety bond producers know all too well the frustrations of entering the same bond data over and over into different surety companies’ systems. Now, there may be an end in sight to that repetitive task. NASBP, in conjunction with the Surety and Fidelity Association of America and ACORD, a global, nonprofit insurance standards ...

By Andrew Avalon In a perfect world, the owner never changes his mind, the engineer never alters his drawings, the contractor never has execution problems, the resident engineer’s decisions are perfect, and Mother Nature behaves herself. That perfect world does not exist. In the real world, with geometric precision, the forces of owner, engineer, contractor, and Mother Nature combine to ...